My knuckles looked like your did when I did my king pins a month ago. I used a wire wheel on a grinder and they came out pretty good, primed painted and now it looks almost new. I had the same problem with the lower dust cap and race. I used a really big punch and a big hammer and it made small work of the race. The hardest part was the king pins, I used a 3/4 drive breaker bar with a piece of hex stock in a socket to break them loose. It sounded like a 22 shot when they broke free. My truck handles a lot better now in my opinion.
I have included a very important picture, it is number 2 and it is the correct order and orientation of the seals. I would have been lost without it.